Buyer’s remorse can happen at any point in our lives including during retirement years. Amid the current inflationary period, many retirees are trying to be mindful with their money. Certain purchases, especially those we think might make us happy, don’t always have this effect. Instead, retirees might regret the purchase and its toll on their savings.
Which purchases do retirees wish they never made? Here are five common purchases in retirement which are definitely not worth the cost.
By a landslide, the retirees GOBankingRates spoke to regret spending money on cars in retirement.
Interestingly, it is not an economy car that is cited as the worst purchase. The worst type of car purchase a retiree can make is often their dream car. Usually, this type of car is vintage and has been on a retiree’s mind for years. It takes a lot of time, and money, to properly restore vintage cars. Some retirees we spoke with, who retired early, had to come out of retirement just to pay for their automobile bills after promising their partners they would not drain the retirement fund for the payments.
Retirees who don’t purchase a vacation home may find the idea of investing in a timeshare to be appealing.
However, it is strongly recommended retirees do not put their retirement fund toward this purchase. Timeshare contracts, especially if you don’t read them carefully, may leave a retiree liable for footing the bill on more expenses beyond these mortgage payments. Those who default on a timeshare face foreclosure which could negatively impact your credit score and saddle retirees with even more negative financial consequences.
Big homes, whether they are for the purpose of vacation or just an upgrade from your existing address, are another common regrettable purchase retirees make.
There’s almost a laundry list of reasons as to why this is a bad purchase ranging from paying for home repairs and maintenance to expensive property taxes and significant utility bills spent on keeping a massive space cool in the summer and warm in the winter. Retirees with health issues may also suffer some difficulties getting around, as a big house tends to require a lot of able-bodied movement.
Many retirees often have big dreams of sailing the world when they retire. Achieving this dream requires the purchase of a boat.
Buying a boat is usually more fun in theory than actual practice. Owners must keep up with maintenance and repairs, get it cleaned on a regular basis, pay registration fees to keep it on the water and determine which type of boat insurance to invest in. Oh, and you need a license to drive a boat and will likely pay a tax on the boat as well. Did we mention you could also be on a docking waitlist for years and need a storage space to keep a boat in? There are even more financial reasons to avoid purchasing a boat in your retirement years. We just covered the tip of the iceberg.
Impulse Items on TV Programming
Were you flipping through TV channels and landed on a shopping network selling a quartz pendant or a cybersecurity system? Did you call and order it because you thought you’d like to have it? Does the item you bought now live somewhere in the back of your closet? Yep, it sounds like you made an impulse buy coaxed on by a TV show.
Impulse buys aren’t limited to what retirees see on TV. Sometimes they’re for sale on Amazon, available on Facebook Marketplace or in a storefront window. Even though a retiree doesn’t need them, they may like something about the item whether it’s the color or design. Before you add to cart or call to place an order, think about what you are buying and why you are buying it. If you really and truly do not need it, save the money and put it toward something you would much rather like to own.
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